0001|                           SENATE BILL 318
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                           MANNY M. ARAGON
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO FINANCING OF CORRECTIONAL FACILITIES; AUTHORIZING
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0012|     THE ISSUANCE OF SEVERANCE TAX BONDS AND NEW MEXICO FINANCE
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0013|     AUTHORITY REVENUE BONDS FOR ACQUISITION OF CORRECTIONAL
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0014|     FACILITIES; AUTHORIZING THE CORRECTIONS DEPARTMENT TO ENTER
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0015|     INTO CONTRACTS TO HOUSE INMATES; CREATING A FUND; REPEALING
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0016|     AND ENACTING SECTIONS OF THE NMSA 1978; REPEALING A SECTION OF
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0017|     LAWS 1995; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.
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0018|     
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0019|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0020|          Section 1.  CORRECTIONAL FACILITIES ACQUISITION FUND
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0021|     CREATED.--
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0022|               A.  The "correctional facilities acquisition fund"
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0023|     is created in the state treasury.  The fund shall consist of
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0024|     severance tax bond proceeds, New Mexico finance authority
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0025|     revenue bond proceeds and appropriations to the fund.  Except
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0001|     as provided in Subsection C of this section, balances in the
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0002|     fund at the end of any fiscal year shall remain in the fund. 
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0003|     Earnings from investment of the fund shall be credited to the
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0004|     fund.
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0005|               B.  Money in the correctional facilities
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0006|     acquisition fund is available for appropriation by the
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0007|     legislature for the acquisition of correctional facilities.
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0008|               C.  Upon certification by the secretary of
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0009|     corrections and the secretary of general services to the
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0010|     department of finance and administration that no additional
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0011|     money is needed from the correctional facilities acquisition
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0012|     fund for the acquisition of correctional facilities, any
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0013|     balances remaining in the fund shall be transferred to the
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0014|     general fund.
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0015|          Section 2.  CONTRACT TO HOUSE ADULT INMATES IN TREATMENT
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0016|     OR SPECIAL PROGRAM FACILITIES.--
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0017|               A.  The corrections department shall solicit
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0018|     proposals for the purpose of entering into a contract with a
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0019|     private detention facility pursuant to Subsection G of Section
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0020|     31-20-2 NMSA 1978 to operate both an adult female
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0021|     reintegration facility and an in-prison substance abuse
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0022|     treatment facility for adult male inmates.  
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0023|               B.  The facility contracting with the corrections
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0024|     department pursuant to Subsection A of this section shall:
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0025|                    (1)  be privately financed, designed,
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0001|     constructed and operated by the contractor; provided that a
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0002|     facility financed by bonds issued pursuant to the Industrial
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0003|     Revenue Bond Act or the County Industrial Revenue Bond Act and
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0004|     sold to the contractor shall be privately financed by the
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0005|     contractor for the purposes of this paragraph;
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0006|                    (2)  consist of a two-hundred-fifty-bed adult
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0007|     female reintegration facility and a four-hundred-bed adult
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0008|     male in-prison substance abuse treatment facility located
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0009|     adjacent to each other in a correctional complex located in
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0010|     the middle Rio Grande corridor; and
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0011|                    (3)  certify that the facility was built by a
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0012|     primary contractor and subcontractors that:
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0013|                         (a)  maintain their primary places of
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0014|     business in New Mexico;
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0015|                         (b)  hired laborers for construction of
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0016|     the facility as employees, rather than as independent
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0017|     contractors, and who are New Mexico residents;
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0018|                         (c)  provided health care benefits,
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0019|     retirement benefits and unemployment insurance to their
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0020|     employees working on construction of the facility; and
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0021|                         (d)  maintain apprenticeship programs
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0022|     for their employees.
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0023|               C.  The corrections department shall solicit
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0024|     proposals and award any contract pursuant to this section in
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0025|     accordance with the provisions of the Procurement Code.  The
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0001|     contract shall include such terms and conditions as the
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0002|     department may require after consultation with the general
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0003|     services department; provided that the terms and conditions
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0004|     shall include provisions that:
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0005|                    (1)  set forth comprehensive standards for
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0006|     conditions of incarceration;
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0007|                    (2)  require the facility to meet or exceed
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0008|     corrections department standards and meet appropriate
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0009|     certification requirements within one year after beginning
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0010|     operation and remain accredited through the life of the
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0011|     contract;
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0012|                    (3)  require the contractor to assume all
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0013|     liability caused by or arising out of all aspects of the
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0014|     provision or operation of the facility;
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0015|                    (4)  require liability insurance or other
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0016|     proof of financial responsibility acceptable to the general
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0017|     services department that covers the contractor and its
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0018|     officers, employees and agents in an amount sufficient to
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0019|     cover all liability caused by or arising out of all aspects of
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0020|     the provision or operation of the facility;  
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0021|                    (5)  require termination for cause upon ninety
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0022|     days' notice to the contractor for failure to meet contract
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0023|     provisions when such failure seriously affects the
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0024|     availability or operation of the facility;
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0025|                    (6)  provide that venue for enforcement of the
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0001|     contract shall be in the district court for Santa Fe county;
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0002|                    (7)  require continuation of the contract to
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0003|     be subject to the availability of funds;
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0004|                    (8)  provide that compliance with the contract
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0005|     shall be monitored by the corrections department and the
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0006|     contract may be terminated for noncompliance; and 
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0007|                    (9)  payments under the contract shall be made
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0008|     only on a per diem per inmate basis.
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0009|          Section 3.  NEW MEXICO FINANCE AUTHORITY--PUBLIC PROJECT
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0010|     APPROVAL.--Pursuant to the provisions of Section 6-21-6 NMSA
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0011|     1978, the legislature authorizes the New Mexico finance
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0012|     authority to issue and sell revenue bonds in installments or
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0013|     at one time in an amount not to exceed fifteen million dollars
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0014|     ($15,000,000) payable solely from the public project revolving
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0015|     fund for the acquisition of correctional facilities on terms
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0016|     and conditions established by the authority when the
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0017|     corrections department certifies the need for the issuance of
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0018|     the bonds.  The net proceeds from the sale of the bonds shall
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0019|     be deposited in the correctional facilities acquisition fund
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0020|     for appropriation by the legislature for acquisition of
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0021|     correctional facilities.
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0022|          Section 4.  SEVERANCE TAX BONDS--PURPOSE.--The state
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0023|     board of finance shall issue and sell severance tax bonds in
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0024|     compliance with the Severance Tax Bonding Act in an amount not
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0025|     to exceed forty-four million dollars ($44,000,000) when the
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0001|     corrections department certifies the need for the issuance of
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0002|     the bonds.  The state board of finance shall schedule the
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0003|     issuance and sale of the bonds in the most expeditious and
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0004|     economical manner possible upon a finding by the board that
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0005|     the project has been developed sufficiently to justify the
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0006|     issuance and that the project can proceed to contract within a
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0007|     reasonable time.  The state board of finance shall further
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0008|     take the appropriate steps necessary to comply with the
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0009|     Internal Revenue Code of 1986, as amended.  The proceeds from
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0010|     the sale of the bonds shall be deposited in the correctional
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0011|     facilities acquisition fund for appropriation by the
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0012|     legislature for acquisition of correctional facilities.  Any
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0013|     unexpended or unencumbered balance remaining six months after
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0014|     completion of a project shall revert to the severance tax
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0015|     bonding fund.  If the corrections department has not certified
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0016|     the need for the issuance of the bonds by the end of fiscal
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0017|     year 2000, the authorization provided in this section shall be
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0018|     void.
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0019|          Section 5.  MIDDLE RIO GRANDE CORRIDOR CORRECTIONAL
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0020|     FACILITY STUDY.--
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0021|               A.  The corrections department shall conduct a
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0022|     study of the feasibility of locating a six-hundred-bed medium
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0023|     security correctional facility for adult male inmates adjacent
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0024|     to a correctional complex in the middle Rio Grande corridor
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0025|     consisting of four hundred in-prison substance abuse treatment
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0001|     beds for adult males and two hundred fifty female
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0002|     reintegration beds for adult females.  The study shall focus
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0003|     on a comparison of the advantages, cost-savings and other
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0004|     differences between private and public operation of the medium
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0005|     security facility, which would be located adjacent to a
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0006|     correctional complex that includes an in-prison substance
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0007|     abuse facility and a female reintegration facility, and the
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0008|     feasibility of public and private sharing of infrastructure or
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0009|     services among areas in the central campus of that
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0010|     correctional complex. 
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0011|               B.  The corrections department shall present the
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0012|     results of the study, including its findings and
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0013|     recommendations, to the appropriate interim legislative
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0014|     committee dealing with corrections and the legislative finance
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0015|     committee prior to November 1, 1998 and to the first session
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0016|     of the forty-fourth legislature.
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0017|          Section 6.  APPROPRIATION--HOUSING INMATES IN CIBOLA 
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0018|     COUNTY--CONTRACT PROVISIONS.--
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0019|               A.  Two million dollars ($2,000,000) is
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0020|     appropriated from the general fund to the corrections
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0021|     department for expenditure in fiscal year 1999 to contract
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0022|     with Cibola county to house additional inmates at the Cibola
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0023|     county corrections center.  Any unexpended or unencumbered
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0024|     balance remaining at the end of fiscal year 1999 shall revert
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0025|     to the general fund.
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0001|               B.  The contract entered into pursuant to
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0002|     Subsection A of this section shall provide:
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0003|                    (1)  that the total number of state inmates
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0004|     housed at the Cibola county corrections center shall equal
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0005|     five hundred fifty-two medium-security inmates and one hundred
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0006|     seventy-six minimum-restrict inmates; and
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0007|                    (2)  that the corrections department shall not
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0008|     reduce the number of inmates housed at the Cibola county
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0009|     corrections center below the numbers specified in Paragraph
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0010|     (1) of this subsection unless it has first removed all
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0011|     similarly classified state inmates from all other private,
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0012|     county-operated or out-of-state correctional facilities.
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0013|          Section 7.  APPROPRIATION--GENERAL FUND.--Eight million
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0014|     five hundred thousand dollars ($8,500,000) is appropriated
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0015|     from the general fund to the correctional facilities
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0016|     acquisition fund for expenditure in fiscal year 1998 and
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0017|     subsequent fiscal years for acquisition of correctional
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0018|     facilities.  Any unexpended or unencumbered balance remaining
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0019|     in the correctional facilities acquisition fund after any
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0020|     fiscal year shall not revert to the general fund.
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0021|          Section 8.  ACQUISITION OF CORRECTIONAL FACILITIES--
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0022|     CONDITIONS--APPROPRIATIONS.--
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0023|               A.  Sixty-seven million five hundred thousand
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0024|     dollars ($67,500,000) is appropriated from the correctional
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0025|     facilities acquisition fund to the property control division
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0001|     of the general services department for expenditure in fiscal
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0002|     years 1998 through 2000 in the following amounts for the
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0003|     following purposes:
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0004|                    (1)  thirty-five million dollars ($35,000,000)
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0005|     to acquire an eight-hundred-bed correctional facility in Lea
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0006|     county that is expandable to one thousand two hundred beds;
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0007|     and
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0008|                    (2)  thirty-two million five hundred thousand
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0009|     dollars ($32,500,000) to acquire a six-hundred-bed
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0010|     correctional facility in Guadalupe county that is expandable
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0011|     to nine hundred beds.
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0012|               B.  Each county or political subdivision in the
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0013|     county in which a correctional facility is to be located
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0014|     pursuant to Subsection A of this section shall provide land
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0015|     for the facility site and arrange for utilities, roads and
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0016|     related infrastructure needs to the property line of the
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0017|     facility site in the form of in-kind contributions.  In
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0018|     addition to the appropriation in Paragraph (1) of Subsection A
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0019|     of this section, the city of Hobbs and Lea county shall
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0020|     contribute jointly ten million dollars ($10,000,000) in local
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0021|     matching funds for the correctional facility project
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0022|     authorized in Lea county pursuant to that paragraph.
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0023|               C.  No contract for the acquisition of a facility
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0024|     shall be entered into pursuant to Subsection A of this section
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0025|     unless the secretary of corrections certifies that the
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0001|     facility will be built by a primary contractor and
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0002|     subcontractors that:
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0003|                    (1)  maintain their primary places of business
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0004|     in New Mexico;
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0005|                    (2)  hire laborers for construction of the
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0006|     facility as employees, rather than as independent contractors,
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0007|     and who are New Mexico residents;
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0008|                    (3)  provide health care benefits, retirement
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0009|     benefits and unemployment insurance to their employees working
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0010|     on construction of the facility; and
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0011|                    (4)  maintain apprenticeship programs for
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0012|     their employees.
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0013|          Section 9.  REPEAL.--
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0014|               A.  Section 7-27-5.22 NMSA 1978 (being Laws 1995,
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0015|     Chapter 215, Section 2) is repealed.
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0016|               B.  Laws 1995, Chapter 214, Section 2 is repealed.
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0017|          Section 10.  EMERGENCY.--It is necessary for the public
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0018|     peace, health and safety that this act take effect
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0019|     immediately.
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0020|                              
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